Cloudflare Surpasses Q4 Estimates, Driven by AI Adoption
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy NET?
Source: Newsfilter
- Earnings Beat: Cloudflare reported adjusted earnings of $0.28 per share and revenue of $615 million for Q4, surpassing analyst expectations of $0.27 and $591 million, with a remarkable 34% year-over-year revenue growth indicating robust performance in networking and security solutions.
- Positive Guidance: The company forecasts Q1 revenue between $620 million and $621 million, exceeding the $614 million expected by analysts, and anticipates full-year revenue between $2.79 billion and $2.80 billion, reflecting strong confidence in future growth prospects.
- AI-Driven Demand: The rise of AI agent tools has significantly boosted demand for Cloudflare's networking and security offerings, with CEO Matthew Prince highlighting that AI agents are becoming the new users of the internet, creating a
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Analyst Views on NET
Wall Street analysts forecast NET stock price to rise
25 Analyst Rating
15 Buy
10 Hold
0 Sell
Moderate Buy
Current: 185.170
Low
131.00
Averages
253.24
High
318.00
Current: 185.170
Low
131.00
Averages
253.24
High
318.00
About NET
Cloudflare, Inc. is a connectivity cloud company. Its full suite of products consists of its website and application services to deliver security, performance, and reliability for an organization's websites, applications, and application programming interfaces (APIs); its secure access service edge (SASE) platform, which contains its suite of Zero Trust and network services solutions to help ensure traffic in and out of an organization’s internal network and devices is verified and authorized as well as to securely connect data centers, cloud services, and branch offices to an organization with its Connectivity Cloud; its developer-based solutions to build and deploy serverless applications with scale, performance, security and reliability, and its consumer offerings. Its website and application security product offerings include Web Application Firewall, Bot Management, Distributed Denial of Service Protection, API Security, SSL/TLS Encryption, Script Management, and Security Center.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Analysts' Perspectives: They represent a sampling of analysts' thoughts and should not be interpreted as Barron’s official views or recommendations.
Investment Services Disclosure: Some firms that issued the reports may have provided or intend to provide investment-banking or other services to the companies analyzed.
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- AI Traffic Driven: With increasing demand for AI-related traffic, Fastly is being viewed as a beneficiary of edge traffic growth, a shift that could support ongoing revenue and margin improvements, ensuring the company maintains a competitive edge in a rapidly evolving market.
See More
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